The rupee rose by 35 paise to fresh over four-month high of 53.10 against the American currency in early trade on Sunday on persistent dollar selling by exporters and some banks, fearing further rise in rupee's value.
Dealers said a higher opening in the equity market also supported the rupee. However, weak euro and yen against the dollar restricted the local unit's gains, they added.
Meanwhile, the BSE benchmark index Sensex rose by 56.25 points, or 0.30%, to 18,809.08.
The rupee had gained a hefty 93 paise to close at over four-month high of 53.45 against the dollar in Friday's trade on the back of robust capital inflows.